Part 7

Community investment tax relief
Chapter 5

Withdrawal or reduction of CITR

Disposals

Disposal of loan during 5 year period
243
1
If the investment consists of a loan and within the 5 year period—
a
the investor disposes of the whole of the investment, otherwise than by way of a permitted disposal, or
b
the investor disposes of a part of the investment,
any CITR attributable to the investment in respect of any accounting period must be withdrawn.
2
For the purposes of this section—
a
a disposal is “permitted” if—
i
it is by way of a distribution in the course of dissolving or winding up the CDFI,
ii
it is a disposal within section 24(1) of TCGA 1992 (entire loss, destruction, dissipation or extinction of asset),
iii
it is a deemed disposal under section 24(2) of that Act (claim that value of asset has become negligible), or
iv
it is made after the CDFI has ceased to be accredited under Chapter 2 of Part 7 of ITA 2007, and
b
a full or partial repayment of the loan is not treated as giving rise to a disposal.